Over the past few years, investors have poured into low-yielding Treasury bonds, perceiving them as the safest place to be during the global economic tumult. But, according to Warren Buffett, bonds are one of the most dangerous places for investors to put their money over the long term — and that’s not going to change. [...]
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Tag Archives: inflation
Deflation Could Help Us, Trahan Says
September 27, 2011
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Highly-rated strategist Francois Trahan says that “deflation” is not a dirty word, and that the Federal Reserve could help the economy by allowing deflation to stem commodity price inflation that is “eroding people’s pockets”. Trahan says Fed members and other policymakers and economists are relying on economic principles that aren’t relevant right now. Three main [...]
Read moreArnott on Why the Valuation Picture Is Troubling
September 16, 2011
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Interest rates and inflation have a much greater role in stock market valuations than you might think, and that means the stock market is on a “very dangerous” path, according to Rob Arnott. In an article for Morningstar, Arnott, of Research Affiliates and PIMCO, looks at the relationship between stock market valuation levels, interest rates, [...]
Read moreDreman: Look Past the Fear — Now’s the Time to Buy
September 8, 2011
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While many investors have been fleeing stocks this summer, David Dreman says it’s a good time to be buying. “No, the market volatility and the seemingly never-ending Fed follies are certainly not what makes me positive on stocks today, but there are some good reasons to be bullish right now,” Dreman writes in his latest [...]
Read moreDon’t Forget The Dividends — And Inflation
July 11, 2011
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Investors may spend a lot of time fretting over whether their portfolios are going up or down. But, despite all of the advances in stock market data availability, many may not be getting an accurate picture of what their portfolios are really doing, says The Wall Street Journal’s Jason Zweig. According to Zweig, after last [...]
Read moreArnott: Look to Alternative Investments to Battle Inflation
June 29, 2011
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Saying that a “3-D Hurricane” — debt, deficits, and demographics — is lingering on the horizon for the U.S., Rob Arnott is taking several steps to prepare his portfolio for an inflationary climate. Arnott tells MarketWatch.com that the U.S. budget deficit is worse than many think, if you include entitlement program costs like Medicare, Medicaid, [...]
Read moreWinters Looks Overseas; Growing More Concerned About Inflation
May 6, 2011
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Top-performing fund manager David Winters says many investors are overlooking some great bargains beyond the U.S.’s borders. “The most compelling opportunities are no longer in North America but in companies domiciled overseas or focused on the world beyond the U.S.,” Winters said at InvestmentNews’ 2011 Retirement Income Summit. Winters said he has 75% of his [...]
Read moreBuffett Still Worried on Inflation
April 29, 2011
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Warren Buffett says he’s still worried about inflation, and says, contrary to what many believe, inflation can occur even if the economy is operating with significant excess capacity. “I don’t think there could be a better Fed chairman [than Ben Bernanke], but I still worry about inflation,” Buffett tells CNBC. “He didn’t talk about this [...]
Read moreMuhlenkamp Says Market Fairly Valued; Sees Volatility Ahead
April 25, 2011
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Top value investor Ron Muhlenkamp says that stocks appear “fairly priced”, and that he expects to see equity prices becoming more volatile. In his latest quarterly letter, Muhlenkamp says he thinks stocks have continued to climb a wall of worry in recent months because of the attractive prices that existed six months ago; the U.S. [...]
Read moreO’Shaughnessy on How Inflation Impacts Stocks, Bonds
April 14, 2011
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Given the huge growth in monetary supply that the Federal Reserve has overseen in an effort to combat the financial crisis and Great Recession, many top strategists — including Warren Buffett, John Paulson, and Bill Gross — have said that they expect significant inflation to hit the U.S. at some point. And if that’s the [...]
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